Startups hoping to raise a nine-figure round in the future had most effective temper their ambition venture funding events worth $one hundred million or extra are going extinct — swiftly.
A handful of years back, nine-figure venture funding events had been typical. So considerably so that in the course of my Crunchbase News days, we began to get in touch with them “supergiant” rounds to keep away from possessing to spell out their size. Hell, we in fact ran normal reports of rounds worth a handful of hundred million or extra till sheer volume produced it impractical. Good occasions.
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Now extra than a year previous the peak of the 2021 venture boom, it is clear that these days are behind us. And whilst it took considerably longer to deflate the $one hundred million round bubble than I anticipated, if trends continue, nine-figure venture funding events will come to be, after once again, uncommon adequate to warrant our consideration.
The $one hundred million round’s fall from prominence is an Icarian saga. PitchBook information collected by TechCrunch this morning tells a very simple story: From a steady base of about 75 such funding events per quarter via 2019 and considerably of 2020, the pace at which venture investors pumped capital into startups in nine-figure chunks exploded via 2021, only to come crashing down to prior levels in roughly the exact same quantity of time as it took to attain its peak.
The information is stark: From 75 $one hundred million or higher funding events in Q1 2019 to 426 in Q4 2021, the pace of nine-figure venture bargains has retreated to just 57 therefore far in the very first quarter of 2023.
Naturally, we’ll see the existing quarterly tally tick larger more than the coming weeks, but it is undoubtedly going to close out Q1 below the 157 that we saw in Q4 2022.
Here’s the chart of mega-round deal volume from the start out of 2019 via currently: